No tax break for B.C. shoppers

BELLINGHAM (NEWS1130) - The tax exemption for B.C. shoppers that was going to take effect July 1 in Washington State has been temporarily blocked by a judge at the request of the city of Bellingham and Whatcom County.

When the announcement was made on June 8 by the Washington Department of Revenue, local governments reacted in shock. Many did not like the idea of a foreign government being part in their policy making.

Ken Oplinger with the Bellingham Chamber of Commerce says the city of Bellingham and the county are fighting the tax break because it will cost them $3 million in revenue in the first year.

"City of Bellingham and Whatcom County filed suite against the state of Washington on the imposition of this new mandate. The judge that heard it agreed with them that there needs to be a moratorium put in place, so that arguments could be heard."

Oplinger says for small cities and counties the exemption was going to be a substantial hit to their bottom line, but it's nothing personal against Canadians.

The judge has blocked the tax break until at least July 9th, when the case will be heard in court, at which point the judge will make a determination whether the block will be held in place, or whether they will go ahead and lift it.